11Oct/092
offset indicator, but no debt?
you can take it or leave it.... asked:
Last year my taxes were offset because of my student loans....this has since been cleared up. The offset program hotline says I still have a debt and my taxes may be offset, when I call Dept of Ed. they say that I have no debt and that it was sent to IRS on 12/13 to remove offset indicator. No one on either end says there is anything they can do. IRS says that they have to double check before they offset, an dept of Ed says they'll just take it, attempt to send it to Dept of Ed, then eventually return it to me.
Last year my taxes were offset because of my student loans....this has since been cleared up. The offset program hotline says I still have a debt and my taxes may be offset, when I call Dept of Ed. they say that I have no debt and that it was sent to IRS on 12/13 to remove offset indicator. No one on either end says there is anything they can do. IRS says that they have to double check before they offset, an dept of Ed says they'll just take it, attempt to send it to Dept of Ed, then eventually return it to me.
I found all of this after I filed yesterday......any suggestions who I should try? Or if this has happened to you?
TY
Rodney
October 11th, 2009 - 21:01
Nellie
Your refund will be delayed by several weeks.
October 15th, 2009 - 01:48
Steve
Hold off filing until the offset flag has dropped from your account. This can take a few weeks to clear.
When an account is flagged by FMS for an offset they first verify the debt with the agency that placed the flag. If the agency responds that the debt has been cleared (or fails to respond to the FMS query) then FMS will release your refund for payment to you.
If your refund is offset even though the debt has been cleared you normally have to pursue reimbursement though the agency that received the funds. They would either reverse the payment back to FMS who would then cut you a check, or they would pay you the funds directly.